OTTAWA, ONTARIO--(Marketwired - Oct. 31, 2013) - According to Canada Mortgage and Housing Corporation's (CMHC) Housing Market Outlook, Fall 2013 edition for the Ottawa Census Metropolitan Area (CMA), as high-rise construction declines, total new housing starts will trend lower next year following two years of robust market activity. Single-detached home construction will remain below historical averages over the forecast horizon, albeit firming over 2012 levels as builders move further into the outskirts. The more affordable rows will begin a long-awaited revitalization as substitutes for the more expensive singles and the less spacious condominiums.
"Existing home sales are expected to strengthen slightly over 2013 levels, particularly into the earlier months of 2014 before scaling back once more as interest rates start inching up in the second half of the year. Weaker employment conditions this year will pressure sales down, but some modest growth in employment into 2014 will sustain housing demand," said Sandra Pérez Torres, CMHC's Senior Market Analyst.
MLS® prices will grow around the rate of inflation, as the resale market will remain in balanced market conditions next year. The supply side of the resale housing market, listings, will slow relative to sales as some on-the-fence buyers go ahead with their purchases to take advantage of relatively lower mortgage rates.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.
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